Founded in 1985, the Council of Canadians is Canada’s largest citizens’ organization, with members and chapters across the country. We work to protect Canadian independence by promoting progressive policies on peace, fair trade, energy, clean water and waste water, safe food, public health care, and other issues of social and economic concern to Canadians.
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Friday, January 4, 2013

Localites, we are about to get grinched! by Jennifer Chesnut

The generous season is upon us. Though there is rising hardship across the globe, compared to our sisters and brothers in the Global South, many Canadians have a cup that still overfloweth. We Canucks are busy filling stockings for our little people and dashing down line-ups at the grocery store. For me, what is truly valuable at this dark time of year is a meta moment that rises a little more often. Flashes about what we truly desire from life slip in between the candle gazing, sipping of eggnog, lighting of the hearth. These new-year reflections are a fertile opportunity. One might say a real necessity.

With all the merry-making, we might miss the biggest scrooge sneak since the Grinch flew down to Whoville on his one-dog sleigh. Called the most important under-reported story facing Canadians (NewsWatch Canada), the CETA, or Comprehensive Economic and Trade Agreement, is a plan to set up foreign management of our city assets like hospitals, transit, and energy. By Christmas 2014, Canada Post could become America Post and city water from Halifax to Victoria could be run by Veolia from France. And we thought the ghost of Christmas past was bad.

How does this transfer of power from city councils to foreign corporations work? Canada and other democracies use tax dollars to keep city infrastructure publically run and locally controlled. We employ city councils to make these decisions on our behalf so that we have a voice in the Commons. Enter globalization and a federal government that prefers global over local. Eager to participate in the world trade free market model, our federal government is handing over the keys to our cities not to a quirky little green dude with retro style but to multinational corporations from the EU, the US and Mexico. Because CETA has been written behind closed doors, we don’t know its timeline. However, if it’s similar to the length of the CAN-CHINA FIPA deal, we may get a chance to discuss changes in fifteen years, 2028. City transit, postal service, education, pharmaceuticals, and more will be pushed towards private management outside of Canada. These changes will be enforced by trade tribunals that could fine Canadian cities in the same manner the federal and provincial government have been charged under NAFTA. The province of Newfoundland and Labrador, for example, suffered a multi-million dollar attack for asking Exxon Mobil and Murphy Oil to follow provincial legislation that requires a small percentage of company profits to be invested in local research and development. Under CETA, Canadian cities will be facing this same struggle. It’s like somebody going into our house and stealing what we own while we sleep. Not under the guise of red suit and sleigh but through the signing of what Minister Fast calls the boldest economic plan Canada has ever attempted.

The globalization of national economies through trade law has been gaining ground for thirty years but recently, many are questioning its intelligence and impact on our cultural and ecological survival. In the late nineties, the MAI, much like CETA in its scope, came close to passing before it was exposed and rejected by the OECD community. If CETA passes the way it is, this will be the first time that local government will lose its power to make decisions as a result of a trade deal. It’s important to note that not all city governments will have their power signed away under CETA. Canada is the only country in the negotiations that has offered city assets for permanent bidding by foreign corporations. The idea is that in offering this cash cow, the Europeans will swallow more North American agricultural products like beef. Vandana Shiva, a leader of the International Forum on Globalization, calls the cow a sacred symbol of living economies. In a country that is beginning to ride the wave of localization, remembering its roots at the local farmers market, and spending more and more of its money at local cultural events, this metaphor transfers well to our cities. Our cities are where our money is and where our power lies to create community and politics we love.

What if our cities don’t oblige? Toronto City Council, as part of its request for total exemption from CETA, asked “the Federal Government to protect the powers of the City to create local jobs, protect the environment, and provide services and programs as it sees fit - from any restrictions to those powers in the CETA.” Thirty-nine other city councils and school boards have asked their Premiers for the same thing – to be taken out of the plan. Though CETA is intended to be signed early in the new year, not one Premier has responded yet.

This season is a time to take pause. What is it that we truly desire? What about security on a vulnerable planet. We want our little people and next generation to have stable jobs. We want them to grow up well and see beyond the consumer facade. Free trade for its first twenty-five years has not destroyed Canada, but since the nineties we have endured increasing cultural erosion and economic instability while the power of transnational corporations grows. Compared to CETA, NAFTA was small, and it took away five hundred thousand manufacturing jobs from Canadian families. This holiday, in preparation for the signing of CETA, let’s ask our premiers for the gift that will help the little people, the elders, the middle class and all, to build stability and stronger local communities. Tap into your New Year reflection prowess. When harnessed collectively, our visions for culture and community are the essence of our power. Join the thousands of people in Toronto, Hamilton, London, Victoria and across the country demanding Canadian cities be taken out of CETA by contacting your city councillor and MPP. Vision can only be potentiated by action. Protect your community’s power to make sustainable and creative decisions far into the future. This holiday season -- an exemption for all Canadian cities from CETA -- is the ultimate gift.*localization: to make local

Further details: There is something very unsettling about a state corporation gaining momentous global scope. However, in terms of trade courts over-ruling national legislature if health and social policy challenges corporate profits, only a private corporation can sue a country and not vice versa. Under CETA’s predecessor, NAFTA, Canada has been successfully sued by Ethyl Corp and SD Myers when Canadian policy was used to curb the negative impacts from their products – a carcinogenic gasoline additive and PCBs. As far as I understand, it is not yet possible for a state corporation to sue another country using global (trade) law. These Investor State lawsuits allow a one-way legal process -- foreign corporations suing governments. But with this transmutation of nation power to state-owned companies, you are right, there are many unknowns. Maybe state-owned companies will begin to sue other nations by using global trade law.

The CETA allows for equal exchange with the EU in theory, and there will be some increased profits for specific sectors especially in raw resources like oil and agriculture. Canada’s pork and beef industry and genetically-modified agriculture will likely be a winner from relaxed rules in the EU as a result of CETA. This increase in earnings may not be a positive thing for a citizen of any nationality whose highest values are placed in sustainability not tiny increases in the GDP. Overall, trade deals exemplify trade relationships as they exist already. Canada has a fifty percent trade deficit with the EU. On average, for every 1 unit Canada sells to the EU, we purchase 2 units from the EU.

Canadian companies will have no chance to bid for municipal contracts in European public services. Unknown to many Canadians, over the last five years, the EU has heavily privatized its services. Many Europeans are unhappy with the outcome of this on the public's standard of living and there are hard battles being fought to re-stabilize public assets. Some are being won in places like Paris, France where they have regained public control of water. This, oddly, in the country with the two most powerful water corporations in the world, Veolia and Suez. The EU is not eager to solidify long-term plans for privatization with foreign companies through new generation trade deals. It is only Canada that is offering up this sector, about 70% of our economy. The EU has protected all EU city assets from foreign management under CETA and used the Annexes in the agreement to keep its municipal services out. This is why there has been less alarm about CETA in the EU. The only time that folks in the EU have gotten upset about CETA is when the intellectual property rights chapter of CETA went public and it was disclosed that CETA would restrict internet freedom using copyright law.

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